Board adopts changes to transient-occupancy tax collection and business-license procedure to reflect new state law
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Summary
Nelson County updated its transient-occupancy tax ordinance to implement collection and reporting rules for accommodations intermediaries and adopted a business-license change requiring zoning sign-off before issuance for new or relocated businesses; both ordinances passed unanimously.
The Nelson County Board of Supervisors adopted two ordinances July 8 to align local code with changes in state law and to preserve zoning oversight of new and changed businesses.
On transient-occupancy tax, County staff said the amendments implement provisions of two recently enacted state laws (HB 2383 and SB 1402, effective July 1, 2025). The revisions add definitions for "accommodations," "accommodations intermediary" and "accommodations provider," clarify which party is responsible for collection and remittance when intermediaries are involved, and require intermediaries to provide property addresses and gross receipts monthly to the Commissioner of the Revenue. County staff closed the public hearing with no speakers and the Board adopted Ordinance O2025-04 unanimously.
The Board also adopted Ordinance O2025-05 to amend Chapter 6, Licenses, Permits and Business Regulations, adding an application requirement: new businesses or existing businesses that change physical location or description must submit an approved Zoning Permit from the Planning and Zoning Department prior to issuance of a business license for uses regulated under the Zoning Ordinance (for example, commercial uses, home occupations and short-term rentals).
Teresa Coffey, a resident who spoke during the business-license hearing, asked whether the change would require existing businesses to reapply when they amend elements of their operation; staff clarified the change is intended to capture new businesses and businesses that change location or description so Planning and Zoning can confirm compliance before a license is issued. The Board adopted O2025-05 unanimously.
County staff said the amendments respond to the state code changes and protect the County’s ability to confirm zoning compliance before licenses are issued when Commissioner-provided information is restricted by confidentiality provisions in state law.